(3 points) When sold for $259,000.00, Ferraris have an annual supply of 6758 vehicles and an annual demand of 6691 vehicles.When their price increases to $279,000.00, the annual supply increases to 6913, and the demand decreases to 6010 billion gallons.(a) Assuming that the supply and demand equations are linear, Afind the supply and demand equations.Supply Equation p =Demand Equationp(Note: The equations should be in the form p = mg + b where p denotes the price (in dollars) and q denotes the quantity. The slopeand y-intercept should be accurate to two decimal places).(b) Find the Equilibrium price and quantity.Equilibrium price p =Equilibrium quantity q =(Note: The equilibrium price and quantity should be accurate to two decimal places, and the equilibrium price should include a dollarsign).

The demand function shows the units of commodity that the consumers desire to purchase at the market…

Answered: (3 points) When sold for $259,000.00,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price, dollars per pound Quantity, thousand pounds per day 1.90 1.5 1.35 2.2 1.25 4.4 1.20 5.9 0.95 6.5 0.85 7.0 0.73 8.8 Using the Excel trendline option to estimate a linear demand function, the linear demand function is Q = 12.53 – 6.25p. Suppose the quantity in the first row of the table were 3 instead of 1.5. The linear demand function would now be Q =]-p. (Enter your responses rounded to two decimal places.) Suppose the quantity in the second row of the table were 3.2 instead of 2.2. The linear demand function would now be Q =- p. (Enter your responses rounded to two decimal places.) Enter your answer in each of the answer boxes. JUL 11 MacBook Pro
For a certain commodity the demand equation is given by Demand = −30p + 1000. At a price of $5, 600 units of this commodity are supplied. (a) If the supply equation is linear and the market price is $10, find the supply equation. (b)If the price of this commodity increases by $3 per unit, what effect will this have on the supply and demand of the commodity?
can you answer D
Question Earlier this year, 2021, the price of chicken meat rose unexpectedly reached to 250/ kilo at peak from the previous price of 170/ kilo. This 68% increase of price per kilo was primarily caused by excess demand for chicken meat. This is the result of the decrease in consumption for pork meat due to the threat of African Swine Flu (ASF). However, even though consumer shifted preferences, the increase in the price of chicken was perceived to be too high for the budget of consumers. Therefore, sellers realized decrease in their daily aggregate sales from 1,000 kilos to 700 kilos. 1. Illustrate the change in the market equilibrium through a graph. 2. What presumably happened to the total revenues of the sellers during the price hike period? a.) Compute the price elasticity of demand b.) Derive the total revenue before the hike (TR1), and after the hike (TR2).
1. (a ) The price of a crate of drinks is $9 when the demand is 320 crates and the price per crate drops to $8.50 when the demand is 270 crates. determine the linear price-demand function (b ) calculate the price per crate at a demand of 180 crates (c ) if the equation for supply is given: p(x)= -0.005+10 find the equilibrium price and quantity per crate.
An economist estimates that a market has a demand curve of the form P = 26 - (0.867) Q and a supply curve of the form P = 0.5 + (1.21) Q. (See the curves graphed in the figure below.) Accordingly, she estimates that the equilibrium price ( P e) in the market will be $15.36 (or $15.355561). This means that the amount of the product bought and sold in the market must be ____.
P3
Explain the Slustky equation and discuss how it can be used to determine the effect of a change in income of good (x), if x is an inferior good. Using graphical analysis of consumption of (x, y), show the effect of an increase in the price x on the demand for both goods. What does this indicate about the cross-price elasticity between x and y.
Suppose the supply and demand curves for a particular product are given by: QS = -20 + 2P QD =100 - 2P where QS and QD are quantities in units and P is the price per unit. (b) Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method.] [5]
According to the reading "Gasoline Consumption in the US and Norway", the estimate for the long- run price elasticity of demand was Ed=1.44. We also know that there is better access to public transportation in Norway than in the US. So, this estimate likely the true long-run price elasticity of demand for gasoline. In other words, if the public transit system in Norway was the same as in the US, a 1% increase in the price of gas would reduce the quantity demanded in the long-run by. than 1.44%. (Fill in the blanks.) O Overstates, more. Overstates, less. Overstates, more. O Understates, less.
Calculating the price elasticity of demand: A step-by-stepguide Suppose that during the past year, the price of a virtual reality headset rose from $4,100 to $4,550. During the same time period, consumer sales decreased from 420,000 to 313,000 headsets. Calculate the elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original New Average Change Percentage Change Quantity Price Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price. Step 3: Calculate the change in quantity…
(b) If a consumer spends all of his budget consuming exactly two goods, then is it possible that the law of downward-sloping demand does not hold for one of the goods?

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